Liquidation of Financially Distressed S Corporations: Mastering Tax Implications of Liquidating Distributions
Case Studies on Planning, Calculations, and Property Dispositions
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will delve into case studies on the planning, tax calculations, property dispositions, and dissolution filings required to liquidate an S corporation, particularly those in financial distress. The panel will provide a briefing on the general rules stated in IRC Section 1371 tying liquidation rules back to those applying to C corps, detailing the gain or loss on distributions in exchange for stock, and outline scenarios illustrating the rules in action.
Outline
- Liquidating a distressed corporation
- Preserving S corporation status until the end
- Cancellation of debt of S corporation
- Timing of cancellation of debt
- Impact of shareholder guarantee of debt
- Release from guarantee vs. cancellation of debt
- Payment of obligation by shareholder
- Settlement of debt to the shareholder: ordinary vs. capital loss
- Liquidating distributions
- Loss limitations of corporation
- Loss limitations of shareholder
- Timing of distribution
Benefits
The panel will discuss these and other key issues:
- What are the rules for recognizing income and losses in the year of liquidation of the S corporation?
- How does the S corporation report liquidating distributions of installment receivables and other property?
- How do the S corporation and its shareholders report distributions of encumbered property, including situations where the debt exceeds the value of the asset distributed?
- What are the ramifications to shareholders after liquidation regarding basis, payment of claims against the corporation, and transferee liability?
Faculty
![Jamison, Robert](/img/t/3363c5c3aeea31f1fbd02c00a22e0f8f.jpg)
Professor Robert W. Jamison, CPA
Professor Emeritus of Accounting
Indiana University
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His... | Read More
Mr. Jamison is Professor Emeritus of Accounting at Indiana University, Purdue University, Indianapolis (IUPUI). His principal area of specialization is S Corporations. He is the sole author of S Corporation Taxation, and co-author of Multistate Tax Guide to Pass-Through Entities, both of which are published annually by CCH, a Wolters Kluwer business. He is a regular contributor to Land Grant University Tax Education Foundation, Inc. National Income Tax Workbook and has contributed to Federal Tax Workshop. He presents advanced and update S Corporation seminars for various states' CPA societies and to other professional organizations. He is a member of the AICPA S Corporation Technical Resource Panel. He consults on S corporation and other business entity problems and has secured letter rulings from the IRS.
Close![Wilson, Amanda](/img/t/1e5aa4689c510bf874bc4d0ab7e35157.jpg)
Amanda Wilson
Shareholder
Lowndes
Ms. Wilson concentrates her practice on federal tax planning and structuring and represents clients in a wide variety... | Read More
Ms. Wilson concentrates her practice on federal tax planning and structuring and represents clients in a wide variety of complex federal tax matters, with a particular emphasis on pass-through entities such as partnerships, S corporations and real estate investment trusts. Specifically, she focuses on advising clients on the formation, operation, acquisition and restructuring of pass-through entities.
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